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STANDARD & POORS UPGRADES RATING FOR FIRST UNION CORPORATION

 CHARLOTTE, N.C., Sept. 21 /PRNewswire/ -- For the second time this month, First Union Corporation's (NYSE: FTU FTUpr) credit ratings have been boosted by a rating agency.
 Standard & Poors Corporation (S&P) has upgraded its debt ratings for First Union Corporation. The rating change affects First Union's senior and subordinated debt, preferred stock, certificates of deposit and letters of credit.
 "S&P believes First Union has the experience and managerial resources to produce meaningful operating synergies by combining Dominion's and First American's banking operations," according to the S&P report issued this afternoon.
 Citing improvements in profitability, liquidity, and operational diversity provided by recent mergers and acquisitions as reasons for the rating actions, the report expects First Union's profitability to "remain on an elevated plateau" as the corporation "continues to improve operating efficiencies by reducing redundant costs and gaining incremental economies of scale from recent acquisitions."
 S&P revised its ratings on First Union Corporation's senior debt to A from A-, subordinated debt to A- from BBB+, preferred stock to BBB+ from BBB, and commercial paper to A-1 from A-2. It also raised First Union Corporation of Virginia's senior debt to A from A- and subordinated debt to A- from BBB+; First Union Corporation of Florida's subordinated debt to A- from BBB+. Also, the certificates of deposit and letter of credit-backed issues of First Union National Bank of North Carolina, Georgia, Florida, Dominion Bank NA, First American Bank of Virginia and First American Bank of Maryland were raised to A+/A-1 from A/A-1.
 Earlier this month on Sept. 3, Thomson Bankwatch upgraded its issuer rating for First Union Corporation to B from B/C, citing solid financial performance with particularly strong earnings contributions from several areas, and the acquisitions of Dominion Bankshares, Inc. and First American Metro Corp. as evidence of the company's ability to strengthen its franchise through financially-driven acquisitions.
 At June 30, 1993, First Union Corporation reported assets of $72 billion, and operated 1,434 banking offices in Florida, North Carolina, South Carolina, Georgia, Virginia, Tennessee, Maryland and Washington, D.C., and 232 nonbanking offices in 36 states and the District of Columbia.
 -0- 9/21/93 R
 /CONTACT: (Media) Donna Stockton, 704-374-6999, or (Analyst) Sean Fox, 704-374-7060, both of First Union Corporation/
 (FTU)


CO: First Union Corporation; Standard & Poors Corporation ST: North Carolina IN: FIN SU:

CM -- CH011 -- 4547 09/22/93 09:18 EDT
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Publication:PR Newswire
Date:Sep 22, 1993
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